Bendigo Bank Leads the Charge in Home Loan Rate Changes

As the holiday season kicks off, Australian lenders are still actively adjusting their home loan rates, creating opportunities and challenges for borrowers. Bendigo Bank, a major player in the market, made significant changes in the penultimate week of 2024, increasing variable rates for investors and fixed rates for owner-occupiers while reducing fixed rates for some investment loans.

Despite increasing speculation about a February cash rate cut by the Reserve Bank of Australia (RBA)—with market pricing showing a 73% chance of a reduction to 4.10%—some lenders are still hiking fixed rates. Economists from NAB, Westpac, and ANZ predict rate cuts may not occur until May, while CommBank remains optimistic about a February reduction.

Bendigo Bank’s Moves

Bendigo Bank adjusted rates across various products:

• Variable Rates for Investors: Increased by up to 15 basis points (bps).
• Fixed Rates for Owner-Occupiers: Increased by 20 bps for one- and two-year terms.
• Fixed Rates for Investors: Decreased by 25 bps on select terms, offering potential savings for investment borrowers.

Bendigo Bank hikes variable rates for investors

Bendigo hike fixed rates for owner occupiers…

…and cuts fixed rates for investors

Broader Market Trends

Other lenders followed suit with their own rate adjustments:

• Tiimely Home: Adjusted rates by up to 20 bps, with some fixed investor rates decreasing.

• Auswide Bank: Hiked fixed rates for LVRs up to 80% by 20 bps.
• Adelaide Bank and The Mutual Bank: Made rate changes of up to 45 bps and 20 bps, respectively.

These shifts reflect ongoing lender strategies to balance market demand with economic conditions. Fixed rates, particularly short-term ones, saw significant cuts earlier in the year, but recent increases signal lenders’ caution amid uncertain RBA actions.

What This Means for Borrowers

For those considering refinancing or purchasing a new property, these rate changes underline the importance of acting strategically. Fixed rates have been trending downward in specific areas, which could present opportunities to lock in lower repayments for certain loan terms. However, with variable rates remaining steady at around 6.30% p.a. on average, timing your decision becomes crucial.

Take Control of Your Home Loan Journey

Navigating the dynamic mortgage market can be overwhelming, but you don’t have to do it alone. At Vantage Loans, we specialize in personalized financial solutions to help you make informed decisions. Whether you’re looking to refinance, secure a better rate, or explore investment opportunities, our team is here to guide you every step of the way.

Contact us today at 1800 595 500, email us at [email protected], or visit vantagefinancial.com.au to start your journey toward smarter financial solutions. Let’s make 2024 a year of financial growth and stability!